Sila Realty Trust Celebrates One Year on New York Stock Exchange

Sila Realty Trust Inc. (NYSE:SILA), a net lease real estate investment trust with a focus on healthcare assets, celebrated the one-year anniversary of its listing on the national securities exchange on Friday, June 13, 2025.

On the same day in 2024, the REIT started the trading day at $19. At close, shares finished at $22.70, up 19.47%. At the close of trading this past Friday, shares finished at $24.11, a year-over-year increase of 6.2%. The company pays an annual dividend of $1.60, equal to a yield of 6.64% based on Friday’s closing price.

Prior to listing on the NYSE, the company reported a per share net asset value of $29.92 as of Oct. 31, 2023.

“We are pleased with our strong start to 2025 and believe we are making meaningful progress toward achieving our objectives for the year,” said Michael A. Seton, president and chief executive officer of SILA, discussing operating results for the first quarter of 2025.

Sila had a liquidity position totaling approximately $598.5 million, consisting of $30.5 million in cash and cash equivalents and $568 million of availability under its unsecured credit facility as of March 31, 2025. Seton said Sila’s balance sheet provides “ample flexibility to continue executing on our disciplined growth strategy.”

As previously reported by AltsWire, the Sila REIT, headquartered in Tampa, Fla., announced its plans to list on the NYSE in early April 2024.

Shortly thereafter, the company acknowledged that the price at which the common stock may list on the NYSE could be significantly lower or higher than its estimated per share net asset value of $29.92 as of Oct. 31, 2023. Prior to listing, the company effected a one-for-four reverse stock split for its outstanding shares of common stock on May 1, 2024, to align its common share price with a share price that is more typical for a publicly traded company. In connection with the listing, Sila commenced a modified “Dutch Auction” tender offer to purchase up to $50 million of the company’s outstanding common stock.

According to the REIT, its “disciplined and accretive approach to capital allocation” and then-$500 million available under its revolving credit facility gave it the financial flexibility to pursue a direct listing on the NYSE rather than raising capital through a traditional initial public offering.

As of March 31, 2025, Sila’s real estate portfolio consisted of 136 properties – including medical outpatient buildings, inpatient rehabilitation facilities, and surgical and specialty facilities –  comprising approximately 5.3 million rentable square feet. The weighted average remaining lease term was approximately 9.7 years with 20% of annualized base rent maturing in the next five years and a weighted average fixed rent escalation rate of 2.2%, excluding leases tied to the consumer price index. Also, the weighted average percentage of rentable square feet leased was 96%.

Of the weighted average remaining lease term and rent escalation rate, Seton said: “These characteristics, we believe, are indicative of the long-term, durable nature of our cash flows, while the diversity and quality of our tenancy is reflective of our depth of relationships and contacts in the healthcare marketplace.”

Highlights from Sila’s first Q1 2025 included the following.

• The REIT had a net income of $7.9 million ($0.14 per diluted share), compared to $15 million ($0.26 per diluted share) for the first quarter of 2024.
• Its cash net operating income, or cash NOI, was $41.2 million, as compared to $46.9 million for Q1 2024. The REIT attributed the decrease in cash NOI to receipt of a lease termination fee and the severance fee received from GenesisCare USA Inc. and its affiliates, or GenesisCare, in the first quarter of 2024, as well as a property vacancy as a result of the Steward Healthcare bankruptcy. This was partially offset by an increase in cash NOI from acquisitions and Q1 2025 cash NOI increases at its other same store properties compared to Q1 2024, primarily as a result of contractual rent increases.
• Sila’s adjusted funds from operations, or AFFO, was $29.4 million ($0.53 per diluted share), as compared to $38.3 million ($0.66 per diluted share) during Q1 2024.
• The REIT’s dividend payout to AFFO ratio was 76.4% for the quarter ended March 31. It declared cash distributions per share of $0.40.

In February 2025, Sila entered into a senior unsecured revolving credit agreement with Bank of America N.A., as administrative agent for the lenders, for aggregate commitments available of up to $600 million, which may be increased, subject to lender approval, through incremental term loans and/or revolving loan commitments in an aggregate amount not to exceed $1.5 billion. The maturity date for the agreement is Feb. 16, 2029, which may be extended for a period of six-months on no more than two occasions. The agreement replaced the REIT’s prior $500 million revolving line of credit.

Total principal debt outstanding under the unsecured credit facility as of March 31, was $557 million. Of that, $525 million was fixed through 10 interest rate swap agreements. Sila’s weighted average interest rate on the total principal debt outstanding was 4.7%, including the impact of the interest rate swap agreements. As of the end of Q1 2025, net debt to enterprise value was approximately 26.2%.

During the quarter ended March 31, the REIT acquired an inpatient rehabilitation facility in Knoxville, Tenn., comprising 70,005 rentable square feet, for a purchase price of $35.3 million. At the time of acquisition, the property was 100% leased under an absolute-net lease to Knoxville Rehabilitation Hospital LLC with an expiring lease in 2036. In the second quarter of 2025, the REIT purchased a $23.5 million inpatient rehabilitation facility in Dover, Del.

“We believe that our two most recent acquisitions … exemplify the asset quality that Sila seeks to own. These acquisitions, which are $58.8 million in aggregate purchase price, further demonstrate our ongoing commitment to investing in necessity, purpose-built healthcare real estate that aligns with our strategic focus on lower cost patient settings which support the delivery of specialized care in growing markets,” said Seton.

Also in Q2 2025, specifically May 6, 2025, Sila’s board approved and authorized a quarterly cash dividend of $0.40 per share of common stock payable on June 4 to the company’s stockholders of record as of the close of business on May 21. The quarterly cash dividend of $0.40 per share represents an annualized amount of $1.60 per share.

Another real estate investment trust with a focus on clinical healthcare real estate properties, American Healthcare REIT Inc. (NYSE:AHR), hit the one-year national securities exchange milestone earlier this year. The company’s stock price had grown 145%, from $12 per share to $29.40 per share (as of the close of trading on Feb. 6), with a market cap of $4.5 billion.

Click here to visit AltsWire directory page.